BusinessLeela Palaces to soon file Rs 5,000 crore IPO, largest ever in hotel segment
Luxury hotel chain Leela Palaces, Hotels and Resorts is gearing up to launch its IPO, i.e. initial public offering. For the IPO, the company may soon file draft documents, namely Draft Red Herring Prospectus (DRHP), with the Securities Exchange Board of India, namely SEBI.
According to media reports, the company plans to raise Rs 5,000 crore through the public issue. With this size, it will be the largest ever IPO in the country’s hospitality sector. Leela Palaces was established in 1986 by CP Krishnan Nair. Currently, it is owned by Brookfield Asset Management.
New shares worth Rs 3,000 crore will be issued in the IPO of Leela Palaces.
Reportedly, this is a major issue for the hospitality sector and the company may soon file draft documents with SEBI. New shares worth Rs 3,000 crore will be issued in the IPO. This money will be used for growth capital. Along with this, there will be an offer for sale worth Rs 2,000 crore. In this context, the promoter Brookfield wishes to reduce its participation.
11 investment banks, including Kotak Mahindra Capital, JM Financial, BofA Securities, Morgan Stanley, JP Morgan, Axis Capital, Citi, ICICI Securities, IIFL Capital, Motilal Oswal and SBI Caps, are primarily responsible for maintaining the books of The Leela Palaces. IPO.
Leela Palaces was established in 1986 by CP Krishnan Nair.
Brookfield purchased 4 properties from Leela Palaces in 2019
In March 2019, Canada-based Brookfield had purchased 4 Leela Palaces properties in Delhi, Bengaluru, Udaipur and Chennai from JM Financial Asset Reconstruction Company for Rs 3,950 crore. Leela Mumbai will not be included in the IPO. It is already listed on the stock exchange under the name Hotel Leela Venture Limited (HLV).
In an interview in May this year, Ankur Gupta, head of Asia Pacific and Middle East at Brookfield’s real estate group, had said that The Leela Palaces planned to open around 20 assets across India. The company’s history began with 8 hotels, today it has 15.